2. Classification of Services
NATURE OF SERVICE ACT
TYPE OF RELATIONSHIP THAT THE SERVICE
ORAGIZATION HAS WITH ITS CUSTOMERS
SCOPE FORFOR CUSTOMIZATION AND
JUDGMENT IN DELIVERY OF SERVICE
NATURE OF DEMAND FOR THE SERVICE
METHODS OF SERVICE DELIVERED
3. Nature or
Service Act
Recipient of services
People Things
Tangible Actions
Intangible Actions
•Health care
•Beauty salon
•Restaurants
•Educations
•Information services
•Entertainment
•Freight, Transportation
•Dry cleaning
•Veterinary services
•Banking
•Legal services
•Insurance
NATURE OF SERVICE ACT
The service act consists of tangible and intangible actions. The
tangible actions in turn, are directed at people and things while
intangible actions are directed at customers' intellect and their assets.
4. Nature of
Service Delivery
Type of relationship between the service organization
and its customers
Membership Relationship No Formal Relationship
Continuous delivery of
service
•Insurance
•Cable TV subscription
•College enrollment
•Banking
•Radio station
•Police protection
•Lighthouse
•Public highway.
Discrete transactions
•Long-distance calls
•Theater series subscription
•Travel on commuter ticket
•Repair under warranty
•Health treatment for HMO
member.
•Car rental
•Mail service
•Toll highway
•Pay phone
•Movie theater
•Public transportation
•Restaurant.
TYPE OF RELATIONSHIP THAT THE SERVICE
ORAGIZATION HAS WITH ITS CUSTOMERS
5. Extent to which
customer-contact
personnel exercise
judgment in meeting
individual customer
needs
Extent to which service characteristics are customized
High Low
High •Legal services
•Health care/surgery
•Architectural design
•Real estate agency
•Taxi service
•Beautician
•Plumber
•Education (tutorials).
•Education (large classes)
•Preventive health programs.
Low •Telephone service
•Hotel services
•Retail banking (excluding
major loans)
•Good restaurant.
•Public transportation
•Routine appliance repair
•Fast-food restaurant
•Movie theater
•Spectator sports
SCOPE FORFOR CUSTOMIZATION AND JUDGMENT IN
DELIVERY OF SERVICE
6. Extent to which supply
is constrained
Extent of demand fluctuations over time
Wide Narrow
Peak demand can
usually be met w/o a
major delay
•Electricity
•Natural gas
•Telephone
•Hospital maternity unit
•Police and fire emergencies
•Insurance
•Legal services
•Banking
•Laundry and dry cleaning
Peak demand regularly
exceeds capacity
•Accounting and tax preparation
•Passenger transportation
•Hotels/motels
•Restaurants
•Theaters.
(Services, similar to those in
cell above, but which have
insufficient capacity for their
base level of business).
NATURE OF DEMAND FOR THE SERVICE
7. Nature of interaction
b/w customer and
service organization
Availability of service outlets
Single site Multiple sites
Customer goes to
service organization
•Theater
•Barbershop.
•Bus service
•Fast-food chain.
Service organization
comes to customer
•Lawn care service
•Pest control service
•Taxi
•Mail delivery
•Auto club road service.
Customer and service
organization transact at
arm’s length (mail or
through Internet)
•Credit card company
•Local TV station.
•Broadcast network
•Telephone company.
METHODS OF SERVICE DELIVERED